Indias hcc in talks to restructure loans sources

﻿MUMBAI, March 2 India's Hindustan Construction Company Ltd (HCC) is in talks with banks to restructure roughly $700 million in loans, several sources involved in the matter said on Friday. Loans held by related companies could bring the total of loans to be restructured to about $1.2 billion, two of the sources said. ICICI Bank, India's No.2 lender, is the leader of the consortium which includes Axis Bank and IDBI Bank , one of the sources said. HCC, which builds roads, bridges and power projects, posted a net loss of about $26 million in the December quarter due to higher interest costs and delays in execution.

Indian real estate and construction companies have been hit hard by a slowdown in economic growth and high interest rates in Asia's third-largest economy.

The company did not say whether it was seeking to restructure its loans."HCC as a prudent policy regularly engages with bankers to find long-term solutions so that project execution does not suffer and growth maintained," the company said in a statement to Reuters.

"Sometimes it becomes necessary to hold all lenders meet to address the issues," it said, adding that "follow-up measures" will help it improve finances and shore up its balance sheet. HCC had to stop work for a year starting in late 2010 at its ambitious Lavasa hill city project near Pune in western India due to government wrangling over green laws, costing the company $400,000 a day and forcing the company to abandon plans IPO plans for the project.